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Cordon pricing in the Monocentric city model: Theory and application to Ile-de- France

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Author Info
André De Palma (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, ENS Cachan - Ecole Normale Supérieure de Cachan - Ecole Normale Supérieure de Cachan)
Moez Kilani (Université Paris-Est, CERMICS, Ecole des Ponts ParisTech - Université Paris-Est)
Michel De Lara (Université Paris-Est, CERMICS, Ecole des Ponts ParisTech - Université Paris-Est)
Serge Piperno (Université Paris-Est, CERMICS, Ecole des Ponts ParisTech - Université Paris-Est)

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Abstract

We propose a method to compute an equilibrium solution for the monocentric city model with traffic congestion, and to quantify the im- pact of cordon tolls on social surplus. The focus of this paper is on the comparison of road pricing of one and two cordons, with the no toll and first-best situations as benchmarks. We find that a one-cordon toll yields a social efficiency of 63% with respect to first-best, and that an optimal two-cordon toll increases the efficiency to 73%. Both policies have a pos- itive impact on CO2 emissions because they reduce the average length of trips and reduce the road size.

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Paper provided by HAL in its series Working Papers with number hal-00348437_v1.

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Date of creation: Dec 2008
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Handle: RePEc:hal:wpaper:hal-00348437_v1

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Related research
Keywords: Monocentric model; Cordon toll; Acceptability of road pricing;

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  1. Georgina Santos & Gordon Fraser, 2006. "Road pricing: lessons from London," Economic Policy, CEPR, CES, MSH, vol. 21(46), pages 263-310, 04. [Downloadable!] (restricted)
  2. Robson, Arthur J., 1976. "Cost-benefit analysis and the use of urban land for transportation," Journal of Urban Economics, Elsevier, vol. 3(2), pages 180-191, April. [Downloadable!] (restricted)
  3. Ho, H.W. & Wong, S.C. & Yang, Hai & Loo, Becky P.Y., 2005. "Cordon-based congestion pricing in a continuum traffic equilibrium system," Transportation Research Part A: Policy and Practice, Elsevier, vol. 39(7-9), pages 813-834. [Downloadable!] (restricted)
  4. Maruyama, Takuya & Sumalee, Agachai, 2007. "Efficiency and equity comparison of cordon- and area-based road pricing schemes using a trip-chain equilibrium model," Transportation Research Part A: Policy and Practice, Elsevier, vol. 41(7), pages 655-671, August. [Downloadable!] (restricted)
  5. Arnott, Richard & de Palma, Andre & Lindsey, Robin, 1990. "Economics of a bottleneck," Journal of Urban Economics, Elsevier, vol. 27(1), pages 111-130, January. [Downloadable!] (restricted)
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  6. Mieszkowski, Peter & Mills, Edwin S, 1993. "The Causes of Metropolitan Suburbanization," Journal of Economic Perspectives, American Economic Association, vol. 7(3), pages 135-47, Summer. [Downloadable!] (restricted)
  7. Verhoef, Erik T., 2005. "Second-best congestion pricing schemes in the monocentric city," Journal of Urban Economics, Elsevier, vol. 58(3), pages 367-388, November. [Downloadable!] (restricted)
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  8. de Palma, André & Lindsey, Robin, 2006. "Modelling and evaluation of road pricing in Paris," Transport Policy, Elsevier, vol. 13(2), pages 115-126, March. [Downloadable!] (restricted)
  9. Mun, Se-il & Konishi, Ko-ji & Yoshikawa, Kazuhiro, 2003. "Optimal cordon pricing," Journal of Urban Economics, Elsevier, vol. 54(1), pages 21-38, July. [Downloadable!] (restricted)
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